Tds on director remuneration

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Manoj (Querist)
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16 June 2012 In earlier years on director remuneration TDS was being deducted as salary then due to the introduction of following :

TDS on Payment to director as remuneration, commission, sitting fees be deducted @ 10%.

what will be the scenario?

CA PRAVEEN SINGH

CA PRAVEEN SINGH (Expert)
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16 June 2012 PAYMENT TO DIRECTOR AS A COMMISSION.SITTING FEES.TDS IS TO BE DEDUCTED U/S 194J.@ 10%.

FOR OTHER PAYMENT AS A SALARY TDS IS TO BE DEDUCTED U/S 192.

CA PRAVEEN SINGH

CA PRAVEEN SINGH (Expert)
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16 June 2012 PAYMENT TO DIRECTOR AS A COMMISSION.SITTING FEES.TDS IS TO BE DEDUCTED U/S 194J.@ 10%.

FOR OTHER PAYMENT AS A SALARY TDS IS TO BE DEDUCTED U/S 192.

CA PRAVEEN SINGH

CA PRAVEEN SINGH (Expert)
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16 June 2012 PAYMENT TO DIRECTOR AS A COMMISSION.SITTING FEES.TDS IS TO BE DEDUCTED U/S 194J.@ 10%.

FOR OTHER PAYMENT AS A SALARY TDS IS TO BE DEDUCTED U/S 192.

CA PRAVEEN SINGH

CA PRAVEEN SINGH (Expert)
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16 June 2012 PAYMENT TO DIRECTOR AS A COMMISSION.SITTING FEES.TDS IS TO BE DEDUCTED U/S 194J.@ 10%.

FOR OTHER PAYMENT AS A SALARY TDS IS TO BE DEDUCTED U/S 192.

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CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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16 June 2012 It is very important to see the terms of appointment of directors. If the amount is paid to non executive directors then all type of payment is deductible u/s 194J since he is not in the employement with the company.
A non executive direcors may receive commission, remunearation, Sitting Fees as per the terms of Appointment as non executive directors.
On other hand, An executive directors get salary from the Company and he is not entitlted for sitting Fees.All the payments as per his terms of employement is part of salary and TDS is deducted u/s 192.

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CA PRAVEEN SINGH

CA PRAVEEN SINGH (Expert)
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23 June 2012 YES..AGREE WITH ABOVE EXPERT....

CA PRAVEEN SINGH

CA PRAVEEN SINGH (Expert)
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23 June 2012 It is proposed to amend section 194J to provide that tax is required to
be deducted on the remuneration paid to a director, which is not in the
nature of salary, at the rate of 10% of such remuneration.
The above change will be in case of non executive directors
remunerations i.e. not in the nature of Salary.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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23 June 2012 Sir, it is not proposed, it has already been enacted by the Finance Act, 2012 in section 194J(ba)of income tax Act, 1961.

CA PRAVEEN SINGH

CA PRAVEEN SINGH (Expert)
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24 June 2012 yes.Agree with you...

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